Assignment:
Problem-
Porter Investments needs to develop an investment portfolio for Mrs. Singh from the following list of possible investments:
|
Investment
|
Cost($)
|
Expected Return($)
|
|
A
|
10,000
|
700
|
|
B
|
12,000
|
1,000
|
|
C
|
3,500
|
390
|
|
D
|
5,000
|
500
|
|
E
|
8,500
|
750
|
|
F
|
8,000
|
640
|
|
G
|
4,000
|
300
|
Mrs. Singh has a total of $40,000 to invest. The following conditions must be met. (i) if F is chosen, then G must also be chosen. (ii) at least 4 investments must be chosen; (iii) of A and B at most one can be included.
Formulate this problem as a linear programming problem. Solve the problem to determine what investments should be in Mrs. Singh's optimal portfolio. How much money will she invest and what is her expected return if she purchases this portfolio?